India better positioned to navigate any financial turbulence: UN body

The report projected Indian economy to grow at 9% in FY22 and 6.7% in FY23 as base effect wanes

India is in a better position to navigate financial turbulence due to Fed monetary tightening compared to its situation during the “taper tantrum” episode after the 2008-2009 global financial crisis even though it remains vulnerable, the United Nations said in its "World Economic Situation and Prospects" report.

“This is due to a stronger external position and measures to minimize risks to bank balance sheets. In the medium-term, scarring effects from higher public and private debt or permanent impacts on labour markets could reduce potential growth and prospects for poverty reduction (in South Asia),” the report said.

The report produced by